Newmark Arranges $1.75 Billion Refinancing for Two of Fontainebleau Development's Award-Winning Florida Resorts

Rhea-AI Summary

Newmark Group (NMRK) has arranged significant refinancing deals totaling $1.75 billion for two prestigious Florida resorts owned by Fontainebleau Development. The financing includes a $1.2 billion loan for Fontainebleau Miami Beach and a $550 million loan for JW Marriott Miami Turnberry Resort & Spa, secured through Goldman Sachs and J.P. Morgan.

The Fontainebleau Miami Beach, a 22-acre property with 1,594 guest rooms, features 11 pools, nine dining outlets, and 200,000 square feet of meeting space. It recently completed a new convention center in December 2024. The JW Marriott Miami Turnberry Resort & Spa, spanning 270 acres, includes 685 rooms, two golf courses, and 120,000 square feet of meeting space, following a 2019 renovation.

Positive

• Successfully secured major refinancing totaling $1.75 billion for two luxury properties
• Recent completion of new convention center at Fontainebleau Miami Beach
• Both properties demonstrate strong institutional capital confidence in the luxury resort market

Negative

• None.

Insights

Financial Analyst

The successful $1.75 billion refinancing package for two luxury Florida resorts represents a significant achievement for Newmark (NMRK), demonstrating the company's strong capabilities in commercial real estate financing. The deal size is particularly notable, with $1.2 billion for Fontainebleau Miami Beach and $550 million for JW Marriott Miami Turnberry. Securing financing from major institutions like Goldman Sachs and J.P. Morgan validates the assets' quality and market position.

The timing of this refinancing is strategic, following recent improvements at both properties. The Fontainebleau's new convention center and Turnberry's 2019 renovation enhance their competitive positioning in the luxury resort market. These improvements, combined with South Florida's strong hospitality market, likely contributed to favorable financing terms. For Newmark shareholders, this deal showcases the company's ability to execute large-scale transactions and generate significant fee income.

Real Estate Market Analyst

This refinancing deal reflects robust institutional confidence in premium hospitality assets, particularly in the South Florida market. Both properties represent irreplaceable assets in prime locations - the Fontainebleau's 22-acre beachfront location and Turnberry's 270-acre resort complex are virtually impossible to replicate in today's market. The properties' scale and amenities position them well to capture both leisure and group business demand.

The successful refinancing indicates strong underlying property fundamentals and positive long-term outlook for luxury hospitality in South Florida. The Fontainebleau's new convention center particularly stands out as it positions the property to capture more group business, typically a higher-margin segment. For Newmark, securing financing of this magnitude reinforces their position as a leading player in commercial real estate finance and should help drive future business opportunities.

NEW YORK, Dec. 9, 2024 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, announces it has arranged $1.2 billion and $550 million loans on behalf of Fontainebleau Development for the refinancing of award-winning South Florida resorts Fontainebleau Miami Beach and the JW Marriott Miami Turnberry Resort & Spa, respectively. Newmark Co-Presidents of Global Debt & Structured Finance Jordan Roeschlaub and Jonathan Firestone, Vice Chairman Nick Scribani, Managing Director Tyler Dumon and Director John Caraviello secured the financing from Goldman Sachs and J.P. Morgan on both transactions.

"These financings underscore the enduring appeal of South Florida's premier hospitality assets," said Roeschlaub. "The Fontainebleau Miami Beach and JW Marriott Miami Turnberry Resort & Spa are iconic destinations and exemplars of innovation in the luxury resort market. These transactions highlight the confidence that institutional capital has in best-in-class assets and operators in this dynamic region."

The Fontainebleau Miami Beach has remained a landmark destination in Miami Beach for over 70 years since its original development in 1952, and just delivered a newly built convention center in December 2024. The hotel spans over 22 acres and boasts 1,594 spacious guest rooms across four distinct towers. It offers best-in-class amenities, such as full-service beachfront access, 11 unique pools with luxury cabanas, nine food and beverage outlets, three nightlife and lounge venues, 200,000 square feet of existing meeting and event space and a 40,000 square foot spa which includes a 5,800 square foot fitness center.

The JW Marriott Miami Turnberry Resort & Spa has stood as an iconic destination in South Florida for over 50 years since its original development in 1967, and recently underwent an extensive renovation and expansion in 2019. The 270-acre resort includes 685 guest rooms, two golf courses with a private country club, 120,000 square feet of versatile meeting and event space, six award-winning restaurants and lounges, a state-of-the-art waterpark and a 25,000 square foot spa.

About Fontainebleau Development
Fontainebleau Development is one of the country's premiere real estate development and hospitality groups with a diverse array of luxury hospitality, retail, residential, and commercial assets. Fontainebleau Development's hospitality portfolio includes the recently opened Fontainebleau Las Vegas, Fontainebleau Miami Beach, JW Marriott Miami Turnberry Resort & Spa and Hilton Downtown Nashville. Additionally, Fontainebleau has developed numerous residential landmarks such as Turnberry Ocean Club, Turnberry Ocean Colony and Porto Vita.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2024, Newmark generated revenues of approximately $2.6 billion. As of that same date, Newmark's company-owned offices, together with its business partners, operated from nearly 170 offices with more than 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What is the value of the refinancing deal arranged by Newmark (NMRK) for Fontainebleau Development's Florida resorts?

Newmark arranged a total of $1.75 billion in refinancing, comprising $1.2 billion for Fontainebleau Miami Beach and $550 million for JW Marriott Miami Turnberry Resort & Spa.

Which banks provided the financing for Newmark's (NMRK) Florida resort refinancing deal?

Goldman Sachs and J.P. Morgan provided the financing for both transactions.

What new development was completed at Fontainebleau Miami Beach in December 2024?

A newly built convention center was completed at Fontainebleau Miami Beach in December 2024.